Kasich closer to turnpike lease

Joe Vardon, The Columbus Dispatch

Friday

Oct 5, 2012 at 12:01 AMOct 5, 2012 at 11:49 AM

CLEVELAND - Gov. John Kasich is nearly ready to leverage the 241-mile Ohio Turnpike to pay for the state's infrastructure projects - something he has hinted at since taking office but has yet to pursue because of questions of feasibility.

CLEVELAND - Gov. John Kasich is nearly ready to leverage the 241-mile Ohio Turnpike to pay for the state's infrastructure projects - something he has hinted at since taking office but has yet to pursue because of questions of feasibility.

Kasich said yesterday that he's studying options that would leverage "more than $1 billion, and that's a lowball (figure)," for the state, and that a formal proposal could be announced within 30 days. It's believed that the Kasich administration is studying at least two options: leasing the turnpike over a period of years or issuing bonds against it.

Kasich described his estimate as both "conservative" and "a lot of money." He said the funds would come to the state "over time" instead of in a lump payment, and they would be used "to take care of a lot of our infrastructure needs for a period of about a decade, if it's done right."

A lease would need the legislature's approval. The Ohio Turnpike Commission has the authority to finance debt, but the legislature would have to change state law to allow the money to be used outside the turnpike.

"The bottom line is there may be some real money lying out there if we do this thing the right way. And everybody needs to stay cool," Kasich said to a group of Cleveland leaders, including Mayor Frank Jackson, who were gathered on the city's west side as he announced that a separate Department of Transportation project will be accelerated for construction.

Kasich's plea to "stay cool" is a reference to the political difficulties associated with leveraging the turnpike. Some lawmakers and constituents in the state's northern half have expressed strong opposition to the idea.

For nearly two years, Kasich has hinted at his desire to lease or otherwise leverage the turnpike, which runs from Ohio's eastern line near Youngstown to the state's western line. One big step was hiring Austin, Texas-based consultant KPMG Corporate Finance for $2.85 million to study the feasibility of leveraging the turnpike. That study initially was slated for release on July 1 but was pushed back to the end of the year.

Both Kasich and Transportation Director Jerry Wray said yesterday that KPMG's study was finished last month. But Kasich spokesman Rob Nichols later said that no finished report or document had been given to the administration and that the two sides had only "shared ideas" about what was possible.

Kasich also said several times yesterday that the state is studying travelers' concerns related to toll increases, maintenance issues and traffic - but that toll-increase caps, for example, would lower the amount the state could get for the turnpike. He reassured the Cleveland crowd that most of the money from the turnpike would go to projects in northern Ohio.

"People are always worried we'll take the money and put it somewhere else," Kasich said. "I don't think there's been a governor that has never lived in Cleveland that's spent more time here or who's had northeast Ohio as a priority. I feel like I am here every day. It's unbelievable.

"So we're going to treat northeastern and northern Ohio and northwestern Ohio, we're going to treat everybody fairly, and they'll get a big chunk of the money."

jvardon@dispatch.com

@joevardon

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.